We are to be subcontractor to a project located on land owned by the Navy or NASA on which our customer leases. Does that affect pre lien and mechanics lien rights in CA?
Aug 17, 2018
Public property is not subject to lien, and that includes land owned by the federal government (including NASA, the Navy, or any other federal entity). When a project is being performed on federal land, a bond claim will likely be the more appropriate remedy, if a bond is present. Unlike a lien claim, though, a federal ("Miller Act") bond claim does not require preliminary notice. Of course, it's still a good idea to send some preliminary (or "pre-lien") notice anyway or to at least send a Project Awareness Letter. That way, there are open communication lines on the project and the entire payment chain is visible. Finally, if you have other questions regarding payment security on a federal project, this article should help: What Lien Rights Do You Have on a Federal Construction Project?